Most people think the only way to find a rental is through a real estate agent, but there’s a growing private rental market in Australia.
With about 33% of rental property owners across the country opting to “do it themselves”, it’s important would-be tenants understand how the private rental market works. Here’s a list of four things you need to know:
There are four important things you need to know about the private rental market. Picture: Getty.
1. Know the difference between private rental and non-private
A private rental property is one managed without a residential real estate agent or property manager. The owner of the house, apartment or unit – or someone else they appoint – deals directly with tenants; vetting applications, getting paperwork sorted and managing issues day-to-day.
Bessie Hassan, a money expert at finder.com.au said private rentals are popular among first-time renters, students or anyone with a limited rental history wanting to find accommodation within a short amount of time.
A non-private rental is a more traditional and common method, where the owner of a property pays a property manager, usually from a bricks-and-mortar real estate agency, to manage the property and tenancy.
2. Know how to find a place to rent
Vanessa Giannos, a Sydney-based HR executive who self-manages investment properties in Queensland and New South Wales, said private landlords advertise their properties in a variety of ways.
Ms Giannos generally advertises on social media or online selling platforms such as Gumtree as well as traditional real estate sites like realestate.com.au, by using a fee-for-service third-party landlord platform.
3. Know how to apply for a private rental
According to Ms Giannos, applying for a private rental is similar to dealing with an agent. It’s just more personal.
Here’s the process in four simple steps:
Step 1: Inspect
After finding a private rental and contacting the landlord, the first step is usually to inspect the property.
Often a chance to meet and impress the landlord, the walk-through gives would-be tenants a chance to check out the property, see if it’s right for them and make note of any potential issues.
A second inspection can also be part of the process, Ms Giannos, who always does inspections personally, said.
Inspecting a private rental property is the first step in the application process. Picture: realestate.com.au/rent
Step 2: Get paperwork together and apply
As agents do, private landlords ask prospective tenants to fill out an application and provide documentation, so they can pick the best tenant. Some use third-party landlord platforms such as 1form to streamline this process, accepting applications online.
“You want to have a good rental history, evidence of income, good references, including for work, bank statements and a police check is always useful, too,” Ms Giannos said.
When applying for a private rental, “highlight why you would make a great tenant”, she said.
Step 3: Wait
In the same way agents vet applicants and select the best candidate, so do private landlords. The time this takes can vary from landlord to landlord but, generally, you should expect to hear back on the progress of your application within a couple of business days to a week.
It’s now standard for private landlords to run credit checks as part of this process, too. They run such checks to ensure would-be tenants have a good financial track record, as well as a history of paying rent and bills on time. The aim is to make sure applicants have no black marks next to their name when it comes to looking after properties.
Step 4: Sign on the dotted line and pay deposit
Signing the tenancy agreement and paying the deposit – just as is done in the non-private market – happens once the successful tenant agrees to take on the tenancy. “It’s exactly the same as the normal process,” Ms Giannos said.
Be sure to read the agreement thoroughly and notice if there are any additions that you don’t feel comfortable with. Now is the time to bring up anything you’re unsure of because after you’ve signed the lease it becomes harder to make any changes.
It’s also good to make sure you’re on the same page as the landlord about things like pets, outdoor spaces (if they require maintenance or if there are rules around balcony usage) and the method you’ll be using to pay rent each month.
4. Private landlords: Fact or fiction?
Ms Giannos said there are many myths – based on misconceptions and stereotypes – floating around about private landlords, with most of them unfair and unfounded.
Here are three myths busted:
Myth 1: Private landlords can be dodgy
Ms Giannos said most private landlords approach their role with professionalism, responsibility and care, which is the antithesis of a “dodgy operator”. “You can tell if a landlord is dodgy if they don’t treat the process professionally,” she said.
“Make sure you meet the landlord before putting down a deposit, so you know who you are dealing with. Most landlords who do it themselves, prefer the personal approach, so most are above board,” she said.
Myth 2: Private landlords don’t care about their tenants
The perception that private landlords don’t care about their tenants generally relates to money, Ms Giannos said.
“The biggest problem comes when you have to evict someone, this is generally because you are also facing financial issues. However, in my experience as a renter – I always look for private landlords because I prefer them – and my own landlord experience, I believe in win-win.”
Private landlords can often give a personalised rental experience. Picture: Getty.
Myth 3: Private landlords break the rules
Given the amount of legislation, it is possible for private landlords to make mistakes in managing a property, but more often than not they’re not trying to be malicious, Ms Giannos said.
However, in any tenancy situation, it’s important to know your rights and to remember that if you don’t feel empowered to speak up about your landlord’s behaviour there are people that can help.
The best place to start is always with open communication and upfront dialogue but if you’re unsure of where you stand, speak to one of the various state tenancy advocacy bodies such as Victoria’s TAAP or NSW’s tenancy.org.
These free services help consumers who have private residential tenancy agreements and are a great way to get information and help to resolve any issues that come up with minimal fuss.